Union bank increases deposit rates by 1%

Subsequent to the policy rate increase by Reserve Bank of India, Union Bank of India has also hiked the rates of its deposits. The new rates would be effective from 4th August.

The bank’s deposit rates have gone up by 0.25-1% across various deposits. Union Bank has also hiked its BPLR by 0.5% to 12.25% from 11.75%.

Deposits with tenor of 1 year would have a rate of 6.75% from previous 6.5%.

Deposits with tenor of 91days to below 6 months and from 6 months to below 9 months will now pay 4.5% interest as compared to 3.5% previously and 5% from 4.5% previously.

Deposit rates are expected to increase for numerous banks such as Bank of India and Axis Bank which are expected to hike their rates by 0.25-0.5%